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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Investment behaviour of insurance companies in Nigeria
Author:Akintola-Bello, Olaseni
Periodical:Savings and Development
Geographic term:Nigeria
External link:https://www.jstor.org/stable/25829980
Abstract:Examination of the behaviour of insurance companies as institutional investors in Nigeria, the factors governing insurance companies' investment behaviour, the patterns of behaviour that emerge and any changes that have occurred. The analysis covers two periods, viz. before and after the 1976 Insurance Act. In the period 1969-1974, the investment behaviour of life insurance companies tended to be influenced largely by liquidity considerations, hence the dominance of cash in the portfolio. In a later period (1977-1981), primary consideration in portfolio behaviour was on high investment income or yield while liquidity needs, and security of assets, were of secondary importance. For nonlife companies, emphasis was on balancing the conflicting needs of liquidity and investment income. From the pattern of investments from 1969 to 1981, one can conclude that the managements of insurance companies have been extremely cautious (evidenced by the general emphasis on highly liquid and short-term assets), less aggressive and less innovative in their employment of funds. An explanation may be the absence of policy - an important oversight in the 1976 Act - on solvency requirements and on the quality of investment. Bibliogr., notes, ref.